Markets are shuddering following Wall Street’s sudden realization that inflation isn’t slowing as much as hoped
Financial Markets Wall Street
The Dow lost 1,105 points, or 3.4%, to 31,274, as of 3:08 p.m. Eastern time, and the Nasdaq composite dropped 4.6%. Big tech stocks swooned more than the rest of the market, as all 11 sectors that make up the S&P 500 sank. Markets honed in on a 0.6% rise in such prices during August from July, double what economists expected, said Gargi Chaudhuri, head of investment strategy at iShares.
“The Fed can't let inflation persist. You have to do whatever is necessary to stop prices from going up," said Russell Evans, managing principal at Avitas Wealth Management. “This indicates the Fed still has a lot of work to do to bring inflation down.” In the stock market, all but four of the stocks in the S&P 500 fell. Technology and other high-growth companies fell more than the rest of the market because they're seen as most at risk from higher rates.